Overview: STR Status in Atascadero

Short-term rentals are explicitly ALLOWED in Atascadero, CA, provided operators comply with city licensing requirements, tax obligations, and specific regulatory standards. The City currently permits 132-139 licensed short-term rentals operating within legally permitted residences or rooms within residences for stays fewer than 30 days. All STRs are subject to Transient Occupancy Tax (TOT) collection and remittance, similar to hotels and motels.

How to Start a Short-Term Rental Business in Atascadero

Step-by-Step Process

Step 1: Verify Property Eligibility

• Confirm your property is a legally permitted residence or room within a residence
• Ensure the structure received occupancy approval before January 1, 2020 (if it's an Accessory Dwelling Unit)
• Verify the property is not deed-restricted as affordable housing
• Confirm you will only accommodate one party at a time per rental property
• Ensure only one vacation rental operates per property

Step 2: Prepare Required Documentation

• Complete a site plan showing property lines, structures, and labeling which structure contains the rental
• Obtain a Home Occupation Conditions Form
• Prepare proof of primary residence (if considering future ordinance compliance)

Step 3: Obtain Business License

• Apply for and obtain a Home Occupation Business License from the City
• Pay the initial license fee ($184 as of 2025)
• Submit annual renewal fee ($4 as of 2025)

Step 4: Register for Tax Collection

• Register to collect and remit City Transient Occupancy Taxes (TOTs)
• HdL, the city's third-party administrator, will contact you after license approval

Step 5: Post Legal Notices

• Publicly post a notice outside your property in advance of permit approval (under proposed ordinance)

Required Documents, Permits, Licenses, and Guidelines

Essential Documentation

Primary Permits and Licenses:

• Home Occupation Business License (initial fee: $184, annual renewal: $4)
• Registration for Transient Occupancy Tax collection
• Future annual permit requirement (proposed ordinance)

Required Forms:

• Site Plan (with property lines, structures, rental location labeling)
• Home Occupation Conditions Form
• Home Occupation Business License Application Form

Tax Registration:

• TOT registration through HdL (city's third-party administrator)
• Monthly/quarterly TOT remittance reporting

Compliance Standards:

• Only one vacation rental per property
• One party accommodation at a time
• Mixed-use buildings limited to 40% STR units (unless hotel standards apply)
• No STR operations in unpermitted structures, RVs, or non-residential buildings

Specific Regulations by Jurisdiction

City of Atascadero Regulations

Current Permitted Uses:

• Legally permitted residences
• Rooms within residences
• Mixed-use projects in commercial zones (with 40% unit limitation)

Prohibited Locations:

• Accessory Dwelling Units receiving final occupancy on/after January 1, 2020
• Deed-restricted affordable housing units
• Unpermitted structures (sheds, outbuildings)
• Recreational vehicles (RVs)
• Areas outside legally permitted residences

Operating Requirements:

• Only one vacation rental per property
• Maximum one party accommodated at any given time
• Compliance with home occupation business license conditions
• TOT collection and remittance
• Adherence to parking and noise standards

Proposed Ordinance Requirements (2025):

• Owner must live in the rental unit as primary residence
• Verification through San Luis Obispo County Assessor's Primary Residence Tax Exemption
• 24/7 contact availability for complaint resolution
• Maximum two vehicles per rental party
• Established quiet hours
• Public notice posting requirement
• Annual permit renewal with compliance review
• Penalty fees: $800-$1,000 for violations
• Permit revocation authority for non-compliance

County-Level Regulations (San Luis Obispo County)

The primary regulations for STRs in Atascadero are municipal (city-level). County-level regulations primarily relate to tax assessment and verification processes, particularly the Primary Residence Tax Exemption used for proposed owner-occupancy verification.

State-Level Regulations (California)

Key State Provisions:

• AB 3182 (effective January 1, 2021) restricts STRs in ADUs constructed after January 1, 2020
• State TOT requirements for rentals under 30 days
• Local authority to establish additional regulations within state frameworks

Contact Information for Local STR Authorities

Primary Contact: City of Atascadero

Mailing Address:
City of Atascadero
Community Development Department
6500 Palma Ave
Atascadero, CA 93422

Phone: (805) 461-5000
Fax: (805) 461-7612
Community Development Direct Line: (805) 461-5035

Email: Contact through city website or individual staff members

Tax Administration Contact (TOT Collection)

HdL - Third Party Administrator
Email: atascaderotot@hdlgov.com
Phone: (805) 242-4395

Related Contacts

Planning Division: Available through main city number
Business Licensing: Through Community Development Department
Code Enforcement: (805) 461-5035

Source References

1. Vacation Rental Handout 2022 v2 - Official City Document

2. Home Occupation Business License Form - City Application Form

3. City FAQ - Vacation Rental Licensing - Official City Website

4. SLO Tribune Article - STR Crackdown Coverage - Local News Source

5. Atascadero News - Council STR Ordinance Discussion - Local News Source

Important Considerations for STR Investors

Current Market Status: Atascadero maintains a relatively controlled STR market with 132-139 licensed units generating approximately $331,500 in TOT revenue annually. The city demonstrates proactive planning to prevent market explosion while maintaining tourism accommodation options.

Regulatory Trends: The city is actively developing more stringent owner-occupancy requirements, suggesting future regulatory tightening. Investors should consider the potential impact of proposed owner-residency requirements on investment strategies.

Compliance Cost Structure: Initial licensing costs ($184) plus minimal annual renewals ($4) create a relatively accessible entry point, though proposed penalty fees ($800-$1,000) indicate substantial enforcement costs for non-compliance.

Market Dynamics: Local commentary suggests the city values tourism promotion while addressing legitimate neighborhood concerns around noise, parking, and housing availability. This balanced approach suggests ongoing but manageable regulatory evolution rather than restrictive prohibition.

Investors should monitor ongoing city council discussions regarding the proposed ordinance and prepare for potential owner-occupancy verification requirements.